U.S. stock futures edged lower Sunday evening, trimming last week’s gains amid renewed uncertainty over U.S.-China trade relations and cautious anticipation ahead of major tech earnings. By 20:10 ET (00:10 GMT), S&P 500 Futures fell 0.4% to 5,526.75 points, Nasdaq 100 Futures dropped 0.5% to 19,433.75 points, and Dow Jones Futures declined 0.4% to 40,111.0 points.
Last Friday, Wall Street closed largely higher after strong earnings from Alphabet (NASDAQ:GOOGL) lifted optimism in artificial intelligence-driven growth. The S&P 500 rose 0.7%, the Nasdaq Composite jumped 1.3%, and the Dow Jones Industrial Average ended nearly flat.
Market sentiment briefly strengthened after reports that China had exempted certain U.S. goods from retaliatory tariffs, but this positive momentum quickly faded.
Key movements:
- S&P 500 Futures: -0.4% to 5,526.75
- Nasdaq 100 Futures: -0.5% to 19,433.75
- Dow Jones Futures: -0.4% to 40,111.0
Confusion Clouds US-China Trade Outlook
Conflicting statements over the status of U.S.-China trade negotiations once again unsettled markets. President Donald Trump last week suggested progress in tariff talks and claimed direct engagement with Chinese President Xi Jinping. However, U.S. Treasury Secretary Scott Bessent contradicted Trump’s comments on Sunday, stating he was unaware of any ongoing negotiations and unsure about recent communication with Xi.
Further complicating matters, Chinese officials flatly denied that any new discussions had taken place, fueling skepticism about potential de-escalation in trade tensions. This back-and-forth has left investors grappling with uncertainty, with global trade fears lingering beneath the surface.
Concerns include:
- Potential escalation in trade tensions.
- Growing risk of a global economic slowdown.
- Unreliable communication between Washington and Beijing.
Investor caution is likely to persist until clearer diplomatic signals emerge or substantial policy shifts materialize.
Major Tech Earnings in Focus This Week
Adding to the cautious mood, investors are bracing for a critical week of corporate earnings, particularly from major technology firms. Key reports include:
- Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) on Wednesday.
- Apple Inc. (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) on Thursday.
These earnings will offer insights into the resilience of the “Magnificent Seven” megacaps, especially against a backdrop of slowing global demand and volatile capital spending trends linked to artificial intelligence.
Other notable earnings releases expected this week include:
- Visa Inc. (NYSE:V)
- Coca-Cola Co. (NYSE:KO)
- Caterpillar Inc. (NYSE:CAT)
The results will be crucial for assessing the broader corporate outlook as Wall Street navigates economic headwinds and geopolitical uncertainties.
